Gold Prices Drop as Risks Recede

Gold prices have crashed lower over the last 24 hours on the back of some dollar strength that was seen all across the markets. The gold markets also suffered due to the improvement in the risk sentiment which has helped the investors push their funds back into the stock markets once again. This has helped the stock markets to move higher while we see the gold prices flounder once again. It was just a couple of days back that the prices were near the highs of its range and with the way that the situation in the trade war between the US and China was developing and the escalation of the actual war in Syria, it looked as though it would only be a matter of time before the risks escalated further and the demand for gold increased.

Gold Falls Below $1350

The demand for gold should have increased under normal circumstances due to the fact that it is viewed as a safe haven but that has not happened so far which is a surprise. In fact, on the contrary, we are seeing a lot of selling in the gold markets which has pushed the prices lower through the 1350 region and back towards the 1340 region as of this writing. It looks as though the prices would continue to trade weaker as the traders might look to give up their positions ahead of what is likely to be a weekend full of news. The traders would not want to be caught out in such a situation.

The oil prices seem to be impacted very little by the move of the dollar and the prices of oil continued to peak as it has broken through the $67 region at this time and as we had mentioned in our forecast last week, it looks all set to break through towards the $70 region over the short term.

The silver prices have also been suffering over the last 24 hours and they continue to trade in the tight range between the $16 and the $17 regions as of this writing.